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Examination Report: OAS-RA-13-30

September 19, 2013

Alamo Area Council of Governments – Weatherization Assistance Program Funds Provided by the American Recovery and Reinvestment Act of 2009

As part of the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Weatherization Assistance Program (Weatherization Program) received $5 billion to reduce energy consumption for low-income households through energy efficient upgrades. The State of Texas received $327 million in Weatherization Program Recovery Act grant funding, of which $15.5 million was allocated to the Alamo Area Council of Governments (Alamo) to weatherize approximately 3,000 homes. The State of Texas' Department of Housing and Community Affairs was responsible for administering Weatherization Program grants, including funds provided to Alamo. The Office of Inspector General contracted with Lani Eko & Company, CPAs, PLLC (Lani Eko), to express an opinion on Alamo's compliance with applicable Federal and state laws, regulations and program guidelines.

The examination found that Alamo had falsified Weatherization Program records and improperly weatherized multi-family dwellings. Further, Alamo had incurred unallowable costs of $146,850 for forensic audits and reviews to determine the extent of the program's mismanagement. Specifically Lani Eko noted instances in which a four‑unit building and an eight-unit building were weatherized, even though eligibility requirements had not been met for those buildings. Lani Eko questioned the allowability of the $21,904 in costs incurred for the weatherization of those buildings.

The Department concurred with the recommendation and has been working with the State and Alamo to ensure that all corrective actions are implemented. Its comments were responsive to the recommendation to work with the State to improve administration of Recovery Act Weatherization Program funds at Alamo and resolve the questioned costs.